Inflationary Insolvency Will Make Gold And Silver Prices Explode

September 25, 2018

What happens to gold and silver prices when the Fed “goes all in” during the next financial crisis? 

Money manager Michael Pento says, “They are going to explode when the stock markets melt down and deficits are rising where is the money going to come from?  

It has to come from another unprecedented wave title way, a tsunami of money printing from the Federal Reserve. If that doesn’t get gold and silver prices which are on deaths door awakened from their slumber then nothing will.

The physical demand for precious metals is going to skyrocket. The CFTC futures positions are net short in a huge way. There are record net shorts. 

When that rally comes, it’s going to be a dizzying rally. The inflationary pressures that are building in debt and in base money supply make me believe that the inflationary pressures are going to be unprecedented, the likes of which we have never seen. 

It might even make the 1970’s and 1980’s look quiescent. That’s the kind of inflationary insolvency that have been built up. When that is released, you are really going to want to own precious metals.”

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Michael Pento is the President and Founder of Pento Portfolio Strategies (PPS). PPS is a Registered Investment Advisory Firm that provides money management services and research for individual and institutional clients.

Michael is a well-established specialist in markets and economics and a regular guest on CNBC, CNN, Bloomberg, FOX Business News and other international media outlets. His market analysis can also be read in most major financial publications, including the Wall Street Journal. He also acts as a Financial Columnist for Forbes, Contributor to thestreet.com and is a blogger at the Huffington Post.

Prior to starting PPS, Michael served as a senior economist and vice president of the managed products division of Euro Pacific Capital. There, he also led an external sales division that marketed their managed products to outside broker-dealers and registered investment advisors.

Additionally, Michael has worked at an investment advisory firm where he helped create ETFs and UITs that were sold throughout Wall Street. Earlier in his career he spent two years on the floor of the New York Stock Exchange. He has carried series 7, 63, 65, 55 and Life and Health Insurance Licenses. Michael Pento graduated from Rowan University in 1991.

China is the world’s biggest gold producer with more than 355 tons annually. Australia is second.